Arla Foods is investing €59.4m in expanding the cream cheese capacity in Holstebro Dairy, Denmark to address global cream cheese growth.
Arla Foods already has a huge production of butter, spreadable and cream cheese at Holstebro Dairy, with around 155,000 tonnes of butter/spread per year and 119,000 tonnes cream cheese per year. The investment will unlock an additional production capacity of cream cheese by 16,000 tonnes yearly to be sold all over the world.
David Boulanger, executive vice president & chief supply chain officer at Arla Foods, said: “We have very strong positions in many markets in the cream cheese category, thanks to naturality and the uniqueness of our cream cheese products.
“As a result, we experience significant demand acceleration in this category in the various markets we operate. With this investment in Holstebro, we will be in a position to meet consumers’ appetite for our products and grow further the cream cheese category.”
Earlier in 2025, a previous expansion in the process facilities in Holstebro was completed adding 27,000 tonnes of additional cream cheese capacity. This new investment will unlock the full process capacity by adding two new filling lines for retail and food service.
The investment also includes an upgrade of the facilities for the employees at the dairy with a new office building and new changing rooms.
The expansion is expected to be ready for use in January 2028.